The Effect of Aggregate Economic Variables on Congressional Elections

Abstract
This paper uses rational voting behavior as an organizing device to develop a framework within which to consider the effect of economic aggregates on voters. Unlike most previous studies, ours permits the voter to vote for candidates of either party or to abstain. A principal finding is that the effect of the main economic aggregates on the participation rate is much clearer than the effects on either party. Our results deny that an incumbent administration can affect the control of Congress by stimulating the economy. Voters appear to make judgments about inflation, unemployment and economic growth. We investigated on the basis of long-term, not short-term performance.

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